Good news, kind of

Krazy Kat sends along this WSJ article on mortgage rate re-sets that indicates that it’s less of a problem than has been feared. That’s because  so many sub-prime variable borrowers have already defaulted, as well as the fact that those particular borrowers’ problems are dwarfed by the number of homeowners whose house values have plunged underwater.

The housing market still faces enormous challenges, and a full recovery is likely to take years. The threat posed by resetting payments, Mr. Khater says, is “a drop in the bucket” compared to problems posed by the sheer volume of borrowers who owe more than their homes are worth, known as being “under water.”

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3 responses to “Good news, kind of

  1. Retired IB'er

    The quote you highlight suggests to me more of a “damning with faint praise” rather than a remotely positive comment on the housing market.

  2. Retired IB'er

    Just saying I do not see how it is good news. Simply less “bad”, but bad none-the-less.

    But I am willing to concede this is a “tu-may-toe”… “to-mot-toe” kind of thing…